Towards H2O Roadmap V2
Can you feel the tide starting to shift?
Recent developments have opened up new opportunities for the H2O project! Read below about an exciting way forward for the H2O non-pegged stable asset project, and PSDN — its (un)governance token.
The Past
The entire data economy movement turned a corner this year, with positive regulatory signals towards giving individuals more control over their own data, not to be overshadowed by the release of OceanONDA V4 — both of which are pivotal to unlocking the potential of the Data Economy.
It’s been a big year for H2O as well; after launching on Ethereum mainnet back in March 2022, H2O went Multi-chain back in June to better serve a diverse group of blockchain users, and in the last couple of weeks H2O has debuted as a medium of exchange in Ocean Market.
The Present
Recent regulatory developments and the announcement of veOCEAN present exciting new opportunities for the H2O project. At the same time, members of the Data Economy community have been eager for H2O to diversify the collateral types used in H2O for a variety of good reasons.
Today the H2O project unveils a bold new vision for achieving the aims above, all while remaining true to the vision of an unpegged stable asset that is backed by the value of the data economy.
Take a look below for a way forward that diversifies the collateral used in H2O in a way that works at every stage of user adoption.
The Future
These days, many protocols are adding vote locking (vl) and vote escrow (ve) to their token mechanisms. These mechanisms reward high conviction and invite stakeholders to signal for long term alignment with the respective protocols.
Vote Escrowed tokens such as veOCEAN are typically non-transferrable, but these ecosystems usually develop Liquid Staking Wrappers — the most famous of these is Convex wrapped Curve (cvxCRV).. These wrappers allow the base token (e.g. Curve (CRV)) to be locked using the wrapper contract instead of the base contract (e.g. veCRV contract) — users receive a liquid staking token such as cvxCRV representing the locked base tokens.
The liquid staking tokens typically trade at a small discount compared to the value of the base token, which can be thought of as a “premium” the liquid staking token holders pay for holding a transferrable token with liquidity. Liquid staking token holders will enjoy staking rewards which include distributed real protocol yield such as fees accrued in Ocean Market.
Similarly in the veOCEAN design, a user locks their OCEAN into the veOCEAN contract, and receives veOCEAN earning the ability to curate data assets and receive revenue from consumed data on the market.
psdnOCEAN will be the liquid staking wrapper for veOCEAN. OCEAN token holders can lock their tokens using the psdnOCEAN contract, which will in turn lock OCEAN in veOCEAN for the maximum lock period. Then, psdnOCEAN token holders will be able to stake their psdnOCEAN to get a share of the rewards going to the veOCEAN locked by psdnOCEAN.
Regarding the current PSDN token, holders gain new abilities like the ability to vote-lock their PSDN tokens so that they can vote, including on how veOCEAN locked through psdnOCEAN is allocated. This includes the option to delegate their vote to potentially earn extra revenue similar to how users delegate their voting power on Votium.
With regard to H2O, sights remain set on the North Star of becoming backed by tokenized data assets, and dominating as a unit account and means of exchange for data. In order to do this, H2O is adding multi-asset capabilities, beginning with the ability to mint H2O using psdnOCEAN, enabling H2O to utilise an untapped pool of collateral. In parallel, H2O project contributors are carefully observing how activity on data markets unfolds to be ready for the time when the data economy accrues the necessary liquidity and transactional volume to include tokenized data as a collateral asset. While the data economy unfolds to the point where we can use data as a backing asset for H2O, the protocol will add support for key liquid staked wrapped tokens from different segments of the emerging data economy.
It is anticipated that this transition could be modelled on the transition MakerDAO made between single asset DAI to multi asset DAI performed back in April 2020.
More updates about H2O, psdnOCEAN and PSDN mechanics will be released in the coming weeks along with our updated roadmap.
Today begins an exciting new age for the data economy!
